Update: Silent Hills has been cancelled, Konami has officially confirmed.

Original story follows:

Amid mounting speculation that the Silent Hills project may have been cancelled, Konami has issued a statement that suggests the game is, at the very least, undergoing major changes.

When the Silent Hills project was first announced, Walking Dead star Norman Reedus was named as its lead actor, lending both his face and voice to the game. But on Monday Konami confirmed to GameSpot that "our contract period with Reedus has expired," following the actor's claims on Twitter that the entire project has been axed.

Grave concerns over the Silent Hills game began in March, when GameSpot revealed that Hideo Kojima--Konami's most renowned developer and a director on the project--is preparing to leave the company once work on Metal Gear Solid 5 is completed.

In the weeks that followed, a slow trickle of revelations continued to suggest that Kojima Productions' relationship with Konami has become complicated. In late March, it emerged that Kojima's regular podcast series was put on hiatus. Then on Sunday, players discovered that the PS4 game P.T.--a playable teaser that was essentially a grand marketing initiative to publicise the Silent Hills Project, would be removed from the PlayStation Store in a matter of days.

Director Guillermo del Toro, who was initially signed as a co-director of Silent Hills, was reported to have said on Sunday that his collaboration with Konami "is not gonna happen."